Revenues from sales of arms and military services by the 100 largest companies in the industry totaled $597 billion in 2022, 3.5% less than in 2021 in real terms, even as demand rose sharply, according to new data released today by Stockholm International Peace Research Institute (SIPRI), Report informs.

War in Ukraine and geopolitical tensions around the world fuelled a strong increase in demand for weapons and military equipment in 2022. However, despite receiving new orders, many US and European arms companies could not significantly ramp up production capacity because of labor shortages, soaring costs and supply chain disruptions that were exacerbated by the war in Ukraine. In addition, countries placed new orders late in the year and the time lag between orders and production meant that the surge in demand was not reflected in these companies’ 2022 revenues.